Skift Take
Several travel startups dream of going public. Lyft's initial public offering shows that profitability isn't necessarily as important as growth in the eyes of some investors, among some other key lessons.
When ridehailing startup Lyft had its initial public offering on Friday, it became the first of a wave of travel companies considering going public during the next few years.
Later this spring, Uber is expected to make its public debut, ending what has been a drought of travel company listings. Rare exceptions were an IPO for online travel agency Despegar last September and one for Veltra, the Tokyo-based tours and activities booking service, in December.
Some travel companies that may go public include lodging-rental giant Airbnb, budget hotel network Oyo, online travel agency Traveloka, payments provider Affirm, business travel booking companies TripActions and TravelPerk, tours-and-activities travel agencies GetYourGuide and Klook, ride-sharing platform BlaBlaCar, travel reseller Secret Escapes, property management service Vacasa, multi-modal search company Omio, and digital concierge services provider Hi Hotels/Tink Labs.
So what can they all learn from Lyft, which pushed ahead of the pack with its offering but then saw its shares fall below its IPO price in subsequent days?
The stock's decline since Friday has tempered some of the early enthusiasm but there are still believers.
